| Further European legislation could help bolster the convergence of the AM industry |
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| 16/05/2004 | |
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In its drive for the integration of the European financial market, the European commission should eventually consider the possibility to legislate further once market forces are taken into account, according to a group of experts mandated by the EC to analyse the state of the financial integration in the asset management industry. While the group of 26 top-level experts agree that European policy makers have recognised the pivotal role of the asset management industry in the unification of Europe's market, they say that "the current level of fragmentation, as reflected in limited cross-border distribution and cross-border flows, together with a sub-optimal scale of operation, still hinder the industry from playing its full part, despite the success of existing legislation." They also convene that the "crucial first step towards delivering a genuine single market for asset management in Europe is the correct and even implementation of the relevant FSAP measures. Supervisory convergence and cooperation should deliver consistent enforcement and the legal certainty needed to support effective market access." Stand-alone pillar In order to bolster the convergence of the European financial markets, the expert group ponders various avenues, among which the creation of a "stand-alone pillar for asset management within EU-legislative framework". The asset management expert group wrote: "In this context, consideration could be given to a consistent and coherent approach encompassing collective and individual portfolio management, to a comprehensive asset management framework covering all functions related to asset management – regardless of the product or the service provider." Alternatively, the current legal framework could be reinforced and built upon according to the EC experts. "One way forward would be to build on the possibilities offered by the existing legal framework. This approach would privilege effective enforcement and implementation of existing provisions." Concerning on the current hot topic, alternative investment, the group concluded "that a flexible, principle-based approach offers the best prospects for an appropriate EU-level framework for alternative investment vehicles including hedge funds, private equity/venture capital, real estate and commodities funds." This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
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